Why should we "do the algebra" of the IS/RT/PC?

 

Professional ecoomists in central banks and the private sector typically discuss their economic outlooks in both qualitative and quantiative terms.

 

Qualitative example: "We expect output to drop modestly." 

 

Quantiatative example: "We expect the output gap to drop by 0.5% of potential output."

 

As a business person, you will want to understand the such assessments. We think you'd want to know about both.

 

This page is designed to give you a "peek into the algebra" of the short-run IS/RT/PC model. Both videos and spreadsheets should help you understand "where did we get those numbers!"